Australian Dollar Analysis 16-06-2020

The Australian dollar rose during the Asian session to witness its bounce for the second session from the lowest since the second of June this year against the US dollar after the developments and economic data that it had reported on the Australian economy and on the cusp of developments and economic data expected today Tuesday by the American economy, which includes the bi-annual certificate for the governor Fed Jerome Powell in front of the US Congress about the Fed's monetary policy.
 
At exactly 03:36 AM GMT, the Australian dollar pair rose against the US dollar by 0.48% to 0.6952 levels compared to the opening levels at 0.6919, after the pair achieved its highest level during the trading session at 0.6977, while the pair achieved its lowest at 0.6911.
 
This has been followed by the Australian economy, the Reserve Bank of Australia revealed the minutes of its last meeting, which was held on the second of this month, during which the monetary policy makers at the Australian Central Bank approved fixing short-term benchmarks for the third consecutive meeting at the lowest ever at 0.25%. Which came in line with expectations at the time.
 
The minutes stated that the Australian central bank will not increase the interest until the economy shows progress towards full employment and sustainable inflation within the target range between 2 ~ 3% and that the speed and timing of the economic recovery are uncertain and that it is ready to increase its purchases of bonds, while ensuring that it will work all What is necessary to ensure the bond markets continue to operate and achieve the three-year bond yield targets.
 
It coincided with the Reserve Bank of Australia issuing a minutes of a meeting held earlier this month to disclose data on the Australian housing market with the release of the first-quarter house price index, which showed a slowdown in the pace of growth to 1.6% compared to 3.9% in the fourth quarter, worse than expected She pointed to a slowdown in growth to 2.5%, while the annual reading of the same indicator showed that the pace of growth accelerated to 7.4% compared to 2.5% in the fourth quarter.
 
On the other hand, investors are currently awaiting by the US economy the disclosure of the retail sales reading, which represents about half of consumer spending, which represents more than two-thirds of the gross domestic product of the United States, which may reflect a rise of 7.9% against the worst ever, a decline of 16.4% last April. Also, the substantial reading of the same index may show an increase of 5.5% compared to the worst ever, a decline of 17.2%.
 
This comes in conjunction with the disclosure of industrial sector data for the largest industrialized country in the world with the release of the industrial production index, which may reflect an increase of 3.0% compared to 11.2% in April, while a reading of the energy utilization index may show an acceleration of growth to 66.8% compared to 64.9% in April, before we witnessed the release of the final reading of the wholesale stocks index, which may show the widening decline to 0.8% compared to 0.2% last March.
 
To the testimony of Federal Reserve Governor Jerome Powell about the semi-annual report of the Federal Reserve monetary policy before the Senate Banking Committee via satellite, before we witness the speech of the Deputy Governor of the Federal Reserve and member of the Federal Open Market Committee Richard Clarida about economic expectations and monetary policy at the annual dinner of the Assembly Foreign policy in Washington is also via satellite.
 

Technical analysis

  
The Australian dollar pair trades against the US dollar rebounded significantly after testing the support of the main bullish channel yesterday, to succeed in achieving our first expected goal at 0.6925 and approaching the second target 0.7000, on the way to achieve more gains during the upcoming sessions, with the indication that it exceeded the last level It will extend the ascending wave to 0.7200.
 
Therefore, we will continue to favor the bullish trend over the intraday and short term provided that the price maintains its stability above 0.6850.
 
The expected trading range for today is between 0.6900 support and 0.7040 resistance
 
Expected trend for today: bullish